DOT approved Continental's bid to start Cleveland-London Gatwick service, granting the carrier a certificate of public convenience and necessity for the route. Cleveland thus gets one of the "switchable gateways" permitted under the current U.S.-U.K. bilateral. Continental also asked for authority to serve London Heathrow, primarily to stake out a position assuming that the current limit of two U.S. carriers there will be lifted as a condition of the proposed American-British Airways alliance.
South American presidents attending a Mercosur free-trade summit in Fortaleza, Brazil, signed an aviation agreement to open new routes. DAILY affiliate Aviation-Latin America&Caribbean reports that the "accord on sub-regional air services" calls for establishment of routes between points that cannot be served under current bilateral agreements among the six signatory nations - Argentina, Chile, Brazil, Bolivia, Paraguay and Uruguay.
British Airways' acquisition of Air Liberte is being delayed by difficulties in negotiations between the U.K. carrier and the creditors of the bankrupt French airline, according to French pilot union sources. The French commercial court that gave BA and its French partner, Banque Rivaud, until mid-December to reach an agreement with Air Liberte's creditors has extended the deadline until Jan. 8.
National Transportation Safety Board sent investigators yesterday to the scene of a fatal crash of an Airborne Express DC-8 freighter that went down while on a maintenance check flight. The crash, about 6 p.m., Sunday near the Virginia-West Virginia state line, killed the three flightcrew and three mechanics aboard. NTSB said the aircraft was at 8,000 feet altitude when it disappeared from the Indianapolis radar screen. The flightcrew had reported a problem, the board said.
Used Jet Aircraft Deliveries September 1996 Carrier # Type Engines Previous Operator 9 Lives Holding 1 737-200 JT8D-9 Sierra Pacific Aerolease 1 DC-8-73CF CFM56-2C3 LH Cargo Air Lsg Air Charter 1 A320-200 CFM56-5A1 Vietnam Airlines Air Jamaica 1 A310-300 PW4152 Airbus Industrie Air One 1 737-300 CFM56-3C1 Transavia
Facing unaccustomed competition from prospective low-fare airlines, Japan Airlines and Japan Air System are developing plans for early establishment of subsidiaries. JAL's unit, not yet named, is to be formed by February and launch service in 1998. With initial capital of 400 million yen (about $3.5 million) before starting service, it will lease two or three 737s from JAL and expand to 10-15 aircraft within a few years. It will link hub cities like Sapporo, Nagoya, Osaka, Fukuoka and Naha with terminal cities like Yamagata and Miyazaki.
AeroRepublica Airlines, which plans to begin serving the U.S. next year, has become an Airlines Reporting Corp. participant, effective with sales on Dec. 30. The Bogota carrier serves Columbia and Latin American cities through sales efforts in Mexico and Peru, ARC said. Its sales in the U.S. will be aided by Americana de Aviacion and Aerolineas Internacionales.
Alaska Airlines and AT&T are offering passengers free five-minute inflight phone calls during Alaska flights on Christmas Day. Incoming as well as outgoing calls are eligible.
UAL Corp. said 2.999 million depositary shares, representing 47.9% of the outstanding issue of 12.25% UAL Corp. Series B preferred stock, were tendered in an offer for an exchange of newly established 13.25% trust originated preferred securities. The shares are expected to begin trading on the New York Stock Exchange Dec. 31 under the symbol UAL Pr T. At that time, there will be 3,266,977 outstanding shares not owned by UAL.
American and Avianca signed a code-share agreement for flights between the U.S. and Columbia starting early next year. American will place its code on Avianca flights from Miami, Los Angeles, New York and Newark to five Columbian gateways - Bogota, Cali, Barranquilla, Medellin and Cartagena - and on selected beyond flights. Avianca's AV code will be on selected flights from Bogota, Cali and Barranquilla to Miami and beyond to Chicago, Dallas/Fort Worth, Los Angeles, New York, San Francisco and Washington, D.C.
SITA says the first Electronic Travel Authority may be operational worldwide by July. ETA will replace the paper visa, providing immediate electronic authorization for business or tourist passengers entering nations that require a visa. The system already is operational in Australia. Airlines confirm the ETA electronically during check-in.
Delta is receiving better marks from its domestic business travelers in its monthly customer satisfaction polls. The carrier improved in November in all 10 categories for business travelers, including seat comfort, employee politeness, check-in and reservations. Delta surveys 1,200 customers, half domestic and half international, each month.
Boeing announced last week plans to produce 40 aircraft per month by the end of 1997. The company now produces 22.5 aircraft each month. Boeing's record production rate was 39.5 aircraft per month in 1992. The company plans to increase 737 production, now at 8.5 per month, to 21 by the end of next year. A second 737 production line, now closed, will be reopened to produce the new-generation 737 aircraft. Thus far, Boeing has received announced orders for 645 aircraft, including 406 737s valued at $47.3 billion.
Standard&Poor's placed ValuJet's corporate credit rating and $150 million of senior notes on CreditWatch with negative implications after FAA denied the carrier's expansion plans last week (DAILY, Dec. 20). When ValuJet resumed operations in September after being grounded for 104 days, it was allowed to use only 15 of its original 51 aircraft. S&P commented that if FAA holds back ValuJet's growth, the airline's unit costs "will likely remain high" and it will lose incremental revenues.
Tension flows and ebbs in America West's 12 tips to travelers for the holiday season. After advising passengers to refuse packages from strangers, report to the police immediately anyone who asks them to carry packages, leave gifts unwrapped because of extra security, not joke with security officials and pay attention to safety briefings that could save their lives, tip No. 10 is to "relax during your trip."
United and Air New Zealand formally filed at DOT for authority to implement a code-sharing arrangement announced earlier this month (DAILY, Dec. 4). To enable marketing and sales by March 1 and code shares by April 7, the carriers have asked for statements of authorization to be granted by Jan. 6. United flights bearing the NZ code will operate Sydney-Los Angeles and Auckland to Los Angeles, Honolulu, Sydney, Melbourne, and Brisbane.
The German regional airline, Lufthansa Cityline, has ordered three additional Canadair regional jets, to be delivered in March 1997 and during the following year. The equipment will replace Cityline's three Fokker 50 turboprop aircraft and bring its total fleet of Canadair Jets to 31. The rest of the carrier's fleet consists of 15 Avro RJ85 jets.
The Machinists union has been cleared to campaign by direct mail, using the Independent Federation of Flight Attendants' membership list, to TWA flight attendants for a representational election. The U.S. Court of Appeals for the Eighth Circuit vacated a temporary stay of use of the list. The Machinists said the National Mediation Board will conduct the election in January.
Orally approved a wet lease of LanChile aircraft to Aerotransportes Mas de Cargo for scheduled all-cargo service between the coterminal points of Mexico City and Cancun, and Miami; and between Mexico City and Los Angeles...Orally approved a Gemini Air Cargo exemption to operate scheduled cargo service between Hong Kong and New York; Columbus, Ohio; Chicago; San Francisco, and Los Angeles...Approved a Rock-It Cargo charter using two HeavyLift Volga Dnepr An-124-100s carrying 20,000 pounds of stage and lighting equipment on Brunei-Cairns, Australia-Nandi, and Fiji-Honolul
An FAA statement that it is investigating the structural integrity of some cargo conversions of 727 aircraft was welcomed by the Air Transport Association (DAILY, Dec. 18). ATA President Carol Hallett said the FAA investigation of potential discrepancies in cargo conversions "should not be interpreted that the FAA will be taking a particular course of action." While recent FAA investigations showed there are potential problems with FAA-approved installation practices and designs in the conversions, it is too soon to reach conclusions, Hallett said.
Depending on FAA airworthiness action, Boeing expects to adopt its next- generation 737's rudder power control unit (PCU) approach as the long-term solution to a jamming problem addressed so far by repetitive - and some say unnecessary - inspections ordered by the agency. Engineers changed the secondary slide in the next-generation 737's PCU dual servo valve long before National Transportation Safety Board tests suggested that extreme cold could jam the 737 slide, stopping or even reversing rudder motion.
Condor Flugdienst has ordered six A320s from Airbus Industrie for delivery in the first half of 1998. The German charter carrier's 168-passenger aircraft will be powered by CFM International engines.
Stalin's Aviation Gulag: A Memoir of Andrei Tupolev and the Purge Era, by L.L. Kerber. Available in English for the first time, the book is a sympathetic memoir of Tupolev's life and work. Smithsonian Institution Press; $45.00 cloth. To order call 800-782-4612.
Lufthansa CityLine, launch customer for the Canadair Regional Jet, has ordered three more plus three options, Bombardier said Friday. The firm- order aircraft, valued at $70 million, will be delivered in March 1997 and January and February 1998.
General Electric Engine Services received a $100 million contract from United to overhaul and repair CF6-6 engines on its DC-10-10 fleet during the period the aircraft are transitioned to Federal Express. GE also performs engine maintenance for FedEx.
